INSURTECH: ENTERPRISE
Tech-friendly Greg Matthews, Nicole Trawick and Sarah Gross at KPMG on a guide to third party risk management and financial services partnerships So, you met a vice president of a large financial services institution at an industry conference and convinced her that your brand new product is critical for the next phase of their project build. Awesome! Then, you pitched the product to her boss and confirmed with the bank’s technology team that your product will integrate into their existing tech stack. Even better! But don’t start fantasising about a global launch quite yet… even with the business, technology and operations
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TheInsurtechMagazine | Issue 3
how to avoid a protracted onboarding timetable when selling products and services to regulated financial services (FS) organisations.
Understand the implications on board, there are stakeholders within procurement, risk and compliance who need to sign off on the deal. Unfortunately, for many tech startups, these control functions can appear to be impenetrable gatekeepers that want to stifle innovation.1 However, it may only take a little understanding and preparation on your part to transform the vendor onboarding process from a Herculean task to a predictable and instructive exercise. This article offers guidance to fintech and insurtechs on
Onboarding implications differ, based on how fintechs structure agreements with a bank or FS organisation. While this is only one lens through which to view your potential business dealings with the FS organisation, it is an important consideration – if speed for signing the contract (and receiving payment) is a key concern. Your two choices are acquisition/joint venture or subscription service/standard vendor contract. Acquisition or joint venture Banks are required to manage the risk from services www.fintech.finance
